§ 105-228.8. Retaliatory premium taxes. - North Carolina Statutes

§105‑228.8.  Retaliatory premium taxes.

(a)        When the laws ofany other state impose, or would impose, any premium taxes, upon North Carolinacompanies doing business in the other state that are, on an aggregate basis, inexcess of the premium taxes directly imposed upon similar companies by thestatutes of this State, the Secretary of Revenue shall impose the same premiumtaxes, on an aggregate basis, upon the companies chartered in the other statedoing business or seeking to do business in North Carolina. Any company subjectto the retaliatory tax imposed by this section shall report and pay the taxwith the annual premium tax return required by G.S. 105‑228.5. Theretaliatory tax imposed by this section shall be included in the quarterlyprepayment rules for premium taxes.

(b)        For purposes ofthis section, the following definitions shall be applied:

(1)        "State"includes the District of Columbia and other states, territories, andpossessions of the United States, the provinces of Canada, and other nations.

(2)        "Companies"includes all entities subject to tax under G.S. 105‑228.5.

(c)        For purposes ofthis section, any premium taxes that are, or would be, imposed upon NorthCarolina companies by any city, county, or other political subdivision oragency of another state shall be deemed to be imposed directly by that state.

(d)        In computing thepremium taxes that another state imposes, or would impose, upon a NorthCarolina company doing business in the state, it shall be assumed that NorthCarolina companies pay the highest rates of premium tax that are generallyimposed by the other state on similar companies chartered outside of the state.

(e)        This section shallnot apply to special purpose obligations or assessments based on premiumsimposed in connection with particular kinds of insurance, to the specialpurpose regulatory charge imposed under G.S. 58‑6‑25, or todedicated special purpose taxes based on premiums. For purposes of thissection, seventy‑five percent (75%) of the one and thirty‑threehundredths percent (1.33%) tax on amounts collected on contracts of insuranceapplicable to fire and lightning coverage shall not be a special purposeobligation or assessment or a dedicated special purpose tax within the meaningof this subsection.

(f)         If the laws ofanother state retaliate against North Carolina companies on other than anaggregate basis, the Secretary of Revenue shall retaliate against companieschartered in that state on the same basis. (1945, c. 752, s. 2; 1987, c.814, s. 1; 1989 (Reg. Sess., 1990), c. 1069, s. 21; 1991, c. 689, s. 291; 1995,c. 360, s. 1(f).)